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DIY Debt Settlement, if I have the money at my disposal?

Date: Sat, 04/14/2007 - 13:00

Submitted by adpro210
on Sat, 04/14/2007 - 13:00

Posts: Credits: [Donate]

Total Replies: 3


Hi, I'm new to the site and need some advice. I am seriously past due on 5 credit card accounts totaling $30,000. All of them have been turned over to colleciton agencies. I was out of work on disability for 2 years and went back to work last year. I now want to settle the debts and have $20,000 at my disposal from a family member to settle these. The collection calls have ramped up lately and I've been called at work now that they have found out my work number. I do not want to go through a debt settlement company (I was in contact with Hess Kennedy prior to my relative's offer of a personal interest free loan) I looked over the DIY section and still feel very nervous about attempting to negotiate lower settlements myself with the collection agencies, I've been abused and put down by them on every phone call. Any advice on negotiating and what to say and not to say to them when making a settlement offer? What is the typical settlement offer? I see posts and have read anywhere between 25% TO $75% of the balance. The balances reflect a ton of fees and accumumlated interest, certainly not what was originally charged. I do owe these debts and want to take care of them. Help!


First get the debt validated by the collection. You must have the accurate picture of the accounts as it stands now. Go through the contract copy you signed with each creditor and review the charges when it reaches collections. Once the CA gives you the details in writing and you have verified for any dispute, draft a settlement offer. See this sample letter in which you can tweak in your personal information

Quote:


YOUR NAME
YOUR ADDRESS
CITY, STATE, ZIP CODE

Date:

CREDITOR NAME
ADDRESS
CITY, STATE, ZIP CODE

RE: Acct.#

Creditor:

I recently obtained a copy of my credit report and noticed that your company has reported me as having the above listed account as: (delinquent, sent to collections, etc.). I wish to bring this account to a resolution that will be fair and beneficial for both of us. Therefore, I propose to pay you X monthly payments of $, or forward a check to you in the amount of $ as payment in full, provided that you are willing to send me a letter stating you will report this to any and all credit reporting agencies as: 'PAID AS AGREED' or notify me in writing that you agree to delete this item from any and all credit reporting agencies.

I WILL NOT agree to accept a 'PAID P & L' or 'CHARGE OFF' for an additional amount of time on my credit report. It is my position that I have suffered enough as a result of this problem.

Upon receipt of your letter I will send you a cashier's check or money order in the amount of $.

Sincerely,

Signature Date signed

Your name Date printed


Don't let the collector know that you have arranged the money. Talk to them on the phone and re-negotiate with the lowest offer. You should be able to negotiate for 60% - 70% of the total balance. They will accept your offer after a couple of calls. Get the deal in writing and also make them mention that they will be reporting your account to the creditor and the bureaus after receiving your money. Don't forget to take the SIF in writing from the collection agency.


lrhall41

Submitted by Trenity on Sat, 04/14/2007 - 13:40

( Posts: 505 | Credits: )


First find out if the creditor has sold the account to the CA. If the creditor still has your file, you may work out direct arrangements with them without dealing with the CA. You need to compare who's giving you the better deal before you decide working with them. Take their calls and put your offer.


lrhall41

Submitted by Trenity on Sat, 04/14/2007 - 15:19

( Posts: 505 | Credits: )